My daughter believes that her great grandpa is sitting with her on the bus and is telling her that she is doing great in school and will grow up to be a pretty girl. Are there spirits of family members out there that visit?
The spirit world is right here, where we are. All the spirits that have lived on this earth remain on this earth until after the resurrection. They see us and know what we are doing. However, they have their own business, their own assignments and callings, and their own associations, so I doubt very much that they stand around watching mortals in their activities, much as we do with television
However, that is not to say that they are not vitally concerned for their loved ones that they have left behind, or that they do not watch over them, or even communicate with them from time to time, consistent with the will of our Father in Heaven. The prophet Joseph Smith stated—
“When men are prepared, they are better off to go hence. . . . The spirits of the just are exalted to a greater and more glorious work; hence they are blessed in their departure to the world of spirits. Enveloped in flaming fire, they are not far from us, and know and understand our thoughts, feelings, and motions, and are often pained therewith” (Discourses of the Prophet Joseph Smith, compiled by Alma P. Burton, p.128).
Now, there is no way for me to know whether your daughter’s grandfather is communicating with her or not. I recognize it as a definite possibility. But I also recognize that many children have vivid imaginations, and sometimes may have some difficulty in differentiating between reality and fancy.